Search form

Search form

The Institute for Supply Management's manufacturing sector index was up to 53.1 in January compared with 50.2 in December, and all five of the component indexes were above 50 last month, indicating industry growth. "A strong ISM report, combined with the employment numbers for January from the Bureau of Labor Statistics showing a modest 4,000 additional manufacturing jobs, is a good start to the year," said Daniel J. Meckstroth, MAPI's chief economist. However, MAPI senior economist Cliff Waldman said there are still weaknesses in manufacturing that will result in output growth of about 2% for 2013, compared with 4% in 2012.

Related Summaries

Production at U.S. factories jumped 0.5% in January, the largest boost in six months. Total industrial output, which includes mining and utilities, saw its largest increase in 14 months, 0.9%. "The major driver of manufacturing growth is consumer spending for basics and durable goods," said Daniel Meckstroth, chief economist at MAPI.

The Institute for Supply Management reported its monthly PMI index reached 57.1% in July from 55.3% in June, a continuation of the sector's expansion for the 14th consecutive month. This reading indicates the sector is in growth mode, says Daniel J. Meckstroth, chief economist for the Manufacturers Alliance for Productivity and Innovation.

The Institute for Supply Management's manufacturing index remained in the growth territory in March, despite the pace of growth dropping slightly, as shown by a decline in the index to 61.2 in March from 61.4 in February. "Manufacturing is clearly growing at a solid pace led by pent-up demand for consumer durables such as motor vehicles and business equipment, including high-tech," said Daniel Meckstroth, chief economist at Manufacturers Alliance/MAPI.

U.S. manufacturing expanded for the 12th consecutive month, according to the Institute for Supply Management. However, although growth is occurring, it is happening more slowly, according to Daniel Meckstroth, chief economist at the Manufacturers Alliance/MAPI. "Surprisingly, the ISM report suggests that manufacturers are planning to add more workers," he added.

A key U.S. manufacturing index from the Institute for Supply Management hit 59.7% in May, a slight dip from its 60.4% reading in April. Any reading above 50% indicates growth in the manufacturing sector, and May marks the tenth consecutive month of growth. "Very low consumer inventories and strong gains in exports signaled in the ISM report point to key reasons for the strong and quick industrial rebound in this cycle," said Daniel J. Meckstroth, chief economist for the Manufacturers Alliance/MAPI.